Building Smarter Climate Policy
We are a think tank conducting data-driven and evidence-based advocacy to improve climate policy in the EU and beyond.
Rhetoric vs reality: setting the record straight on the impact of the EU ETS on industrial competitiveness
This brief examines whether the claims by Czechia and Italy that the EU ETS is responsible for declining industrial competitiveness hold up to scrutiny.
Carbon pricing trends in Asia
This report by Carbon Market Watch, with analysis by Sandbag, examines potential CBAM costs for Japan, South Korea, Vietnam, Indonesia, and the Philippines, based on their trade exposure, production outlooks, and progress toward implementing a domestic carbon price signal.
An opt-in solution to CBAM circumvention and complexity
Our position paper on the Commission’s legislative proposal amending the CBAM proposes an opt-in solution to CBAM circumvention and complexity.
Don’t Ruin the EU ETS! Joint NGO Letter to the European Council
Ahead of the March European Council meeting, we’ve joined a group of 35 civil society organisations calling on EU leaders to protect the integrity of the EU Emissions Trading System.
Chemicals and CCS/U: Exploring the role of carbon capture in the sector’s transition to ‘circularity’
This technical brief explores the potential role of carbon capture, storage and utilisation (CCS/U) for Europe’s chemicals sector.
We find that CCS/U will be necessary in Europe’s chemicals sector, but only to a limited extent in targeted applications.
The EU CBAM gives a boost to Algeria’s iron exports
Sandbag’s brief assesses how the EU Carbon Border Adjustment Mechanism (CBAM) may affect Algeria’s iron and steel exports. It finds that although Algeria’s overall exposure to CBAM is limited, rising EU carbon costs are likely to increase EU market prices, with implications for the revenues and competitiveness of Algerian exports.
CBAM and Fertiliser Inflation in 2026: The facts behind the numbers
Estimates suggesting that the EU’s Carbon Border Adjustment Mechanism (CBAM) could increase fertiliser prices by up to 30% have brought a central question into focus: how significant is the inflationary impact likely to be?
The CBAM dividend for Namibia and Ghana
This research note shows that Namibia and Ghana are likely to benefit from the CBAM, as EU price increases linked to the EU ETS outweigh CBAM fees under current exports. It also sets out transparent transformation scenarios, based on announced industrial projects, to show how expanded and lower-emissions production could further increase export revenues over time.
Steel labelling: Beyond the sliding scale
As EU policymakers debate how to certify low-carbon steel, Sandbag’s new briefing analyses the “sliding scale” method — and outlines why it may hinder rather than help decarbonisation. A new model is proposed based on product-specific benchmarks, multi-tier ratings, and circularity incentives.
Chemicals in the CBAM: Time to step up
Sandbag’s latest brief explains why the EU CBAM must be expanded to cover key chemical value chains. With chemicals and refinery products responsible for 30% of industry emissions, phased inclusion is critical to prevent carbon leakage and phase out free allowances.
Our Impact
March 2026: European Court of Auditors cited Sandbag in its report on the Innovation Fund
Sandbag’s analysis was cited in the European Court of Auditor’s special report on the innovation fund, published on 23 March, 2026.
Citing Sandbag, the report notes that the rating system rewards over-optimistic estimates. As this methodology is used for two of the five award criteria, it is a serious structural flaw.
February 2026: MEP Mohammed Chahim cited Sandbag's analysis on fertiliser prices
Sandbag’s calculations and analysis on the CBAM and the drivers of fertiliser price increases was circulated extensively and quoted by MEP Mohammed Chahim, rapporteur for the CBAM at the European Parliament.
December 2025: Sandbag analysis cited in the European Commission"s CBAM impact assessment
Sandbag’s analysis was cited in the European Commission’s CBAM impact assessment published on 17 December 2025. The assessment explicitly recognises risks of CBAM circumvention and reflects policy options that Sandbag developed on extending CBAM coverage to uncompensated indirect emissions and downstream goods. These policy options were set out in Sandbag’s response to the Commission’s public consultation on CBAM reform, published as Strengthening the CBAM — by default (August 2025).
Read the Commission’s Impact Assessment – Part 1 and Impact Assessment – Part 2.
Our Work
EU ETS
We fight to make the EU Emissions Trading System more effective at driving the decarbonisation of industry, aviation and shipping.
CBAM
We advocate for a fast and comprehensive Carbon Border Adjustment Mechanism to replace the free allocation of emissions allowances under the EU ETS, which is a major flaw of the carbon market.
Industry
Designing policy instruments requires expertise on the sectors and technologies they cover. We have built expertise in steelmaking, aluminum, construction, hydrogen, electrification, and circularity.
Our Interactive Tools
The impacts of policy options are sometimes difficult to estimate, especially when several parameters can be combined. We publish visual tools and simulators to better understand policies and different combinations of policy design options.
Join us in building smarter climate policies!
Mundo Matogné. Rue d’Edimbourg 26, Ixelles 1050 Belgium. Sandbag is a not-for-profit (ASBL) organisation registered in Belgium under the number 0707.935.890. EU transparancy register no. 277895137794-73. VAT: BE0707935890